What are the differences between Hagerty and normal insurance? – Jalopnik

Enthusiasts dream for hours, days, weeks, months and even years about their perfect classic or sports car. Some even spend every penny that comes their way in the expectation that one day they can finally buy that ’60s Mustang, ’90s Porsche, or restomod Bronco — whatever it may be.

However, the purchase of said dream vehicle is only the prologue to what could be a very long and enjoyable story. You have to get to know the vehicle, understand its quirks and weaknesses, get to grips with the best maintenance regimen, oh, and you have to insure it too. That, besides filling up with fuel and turning the key, is actually one of the few barriers standing in your way of actually using the car once it’s purchased.

You can quickly consult a comparison site to find the cheapest insurance quote, or you can simply call up whoever you are traveling with as your daily driver and ask them to add the car. They’re all perfectly legal options, but one company – Hagerty – has spent a lot of money marketing itself, claiming to offer tailor-made policies that could entice some classic owners. But is this just marketing, or is Hagerty actually doing things differently?

Sure, Hagerty claims to offer car enthusiasts a whole host of benefits when it comes to insuring their pride and joy, but what exactly does that mean? And are there other options?

Drivers might worry that if their classic car is written off in an accident, the insurance company will appraise it as just another old beater, and they would be compensated as such. However, Hagerty knows the difference between old nails and desirable classics, so agreed valuations are offered to customers, rather than stated or actual cash values, which is what most mainstream insurers use. There are some insurers who offer agreed values, whether for classics, modified cars or kit cars, but usually on request. Hagerty also regularly predicts which car prices will rise, meaning customers receive an up-to-date valuation with each policy.

Second, Hagerty enables flexible usage. Regular insurers may have mileage limits and usage restrictions on when you can use the car, but Hagerty’s policy allows drivers to use their vehicle whenever they want. Hagerty isn’t the only one offering this, though, and some drivers may even find term insurance policies, which insure the car for only a few days or weeks, to be a cost-effective alternative.

When it comes to making a claim or registering a policy, Hagerty also claims that the staff is familiar with classic cars and understands that repairs after an incident are not necessarily as easy to carry out as they are for a modern commuter. It can be reassuring to have someone on the other end of the line who understands why expensive heritage panels are worth paying for over cheaper aftermarket cartridge units, or why one body shop is worth the cost over another. This level of knowledge is not always guaranteed with a normal insurer, but there are other specialist insurers in addition to Hagerty who can provide a similarly trained ear.

Yes, Hagerty obviously charges insurance premiums, but the company says it won’t charge you extra for the enthusiast-based approach. In fact, Hagerty says premiums can be up to 21% lower than daily driver insurance. The organization claims this is because mainstream insurers can charge as if you were using the vehicle on a daily basis, which obviously increases the chance of an incident, while Hagerty acknowledges this is unlikely to be the case.

In addition, Hagerty also has a Driver’s Club, which guarantees members certain benefits such as roadside assistance with classic-friendly repair services – think flatbeds and soft tires – plus exclusive car discounts, members-only events and an enthusiast magazine.

However, Hagerty is far from the only insurer offering savings to classic car owners. Bailey Insurance Agency reports this that most classic car policies cost between $200 and $600, while daily driver policies are typically around $1,000. So presumably it’s quite easy to realize savings equivalent to what Hagerty advertises by going with an enthusiast-oriented insurer, such as American Collectors or American Modern.

Many other insurers offer similar benefits to Hagerty, such as American Collectors’ agreed valuation feature. The company also has ‘inflation guard’, which means it allows an adjustment to the agreed valuation by up to 6% if it can be shown that the covered car has benefited from an increase in value over the year prior to a claim.

So Hagerty is not alone. Choosing the right insurance for you depends on what you insure and what you use it for. Car And Driver Hagerty emphasizes as the best insurer for cars undergoing restoration, but then suggests Heacock Classic Insurance as a better choice for race-prepared classics. As an all-rounder now Car And Driver‘s choice is American Modern. As always, our advice to consumers is to shop around for the policy that suits you best.